Breakfast is known to be one of the most important meals of the day. It is a profitable business to break into, however, you need to know how to properly start a breakfast restaurant. It also the meal that many families neglect due to lack of time, creativity in cooking and disinterest.
People who wake up late often miss their breakfast as they need to reach their offices, schools, and colleges on time.
Starting a breakfast business allows you to provide busy commuters a chance to have a satisfying breakfast, eat on their way to work or at their desk. You can offer breakfasts to families through a delivery service or through other businesses.
Start a Breakfast Joint Business
You need to have an effective business plan before you start. Every business plan is unique, yet the most effective plans share a handful of essential traits.
Your plan should include an executive summary, marketing, and promotion strategies and a timeline. If your plan lacks these elements, then it could jeopardize its potential to deliver real benefits to your startup. Set your goals and vision statement while planning the business.
Define your Local Territory
Considering the fact that your breakfast restaurant will be largely focused on local customers, it is important that you strategically define the market you serve.
Many breakfast joints struggle because the owner didn’t know how to identify and sell to a localized customer base. You should avoid that mistake and research on local market demographics before you start the business.
Research the Market
Prior to opening your breakfast joint, you should research the market to check out your competitors. Find out the number of competitors you have and the level of competition in the market you are considering.
If the competition is too tough, you should think of starting the business in a different area or even start a completely different business instead.
After evaluating your local competitors, consult someone who is already in the business and learn as much as you can from him.
Find an individual who is not your local competitor and who is ready to give advice to new entrepreneurs. Also, find out the prices of the food served in your competitors’ breakfast joints, this will help you fix your prices.
Research vendors and wholesalers who can provide you with a bulk of grocery items at low cost.
Identify your Niche
You should identify your niche and target market as soon as possible. Fixing a niche will help you to avoid appealing to too broad a customer base.
Some customers may belong to a diverse population ethnically who are more interested in trying new foods whereas other customers will favor self-service and affordable foods.
You can also serve healthy breakfast items such as oatmeal and green tea. Research the local competition to identify your niche and target underserved populations. You cannot satisfy the demands of every customer who visits your joint, focus on your niche and a target market according to that.
Apply for Permits
Go through all the legalities before starting your business. You will need a business license, tax identification number and liability insurance. Check with local agencies to learn about permits for handling and serving food, you might also need an alcohol license if you intend to serve mimosas and bloody marys alongside bacon and eggs.
Retail licenses are necessary if you are selling branded coffee mugs or sweatshirts. Follow all the health codes and the regulations regarding your kitchen.
Equip your Restaurant
You need to equip your restaurant by purchasing items that are necessary for making and serving food as well as running a business. You will need industrial cooking and ventilation units, freezers, bar stools, dining tables and comfortable breakfast booths, shelving and food preparation stations.
Breakfast restaurants require multiple coffee stations since many customers have coffee with their meals. You also need to purchase other essentials like accounting software, computers, telephones and a fax machine for submitting orders.
You can also use point-of-sale computer systems that allow employees to submit orders electronically.
Decide your Menu
Design your menu according to the customer base you are willing to target. Breakfast menu items can include omelets, breakfast burritos or international fares such as crepes and huevos rancheros. You should consider adding special seasonal items to keep the menu fresh and attract returning customers.
For example, summer breakfasts can feature fresh fruit, while fall and winter menus can include apple-flavored lattes or pumpkin muffins. Breakfast is a low-cost meal to prepare when compared with dinner, this is an advantage for your business.
Choose items that are familiar and popular but with a twist to differentiate your menu from the franchised breakfast chains.
Work out pricing. Consider how much the ingredients cost, preparation, delivery time and a profit margin. Compare your prices to those of a fast-food restaurant and a mid-priced restaurant. You can make the best food items for breakfast but if you price them too high then it won’t sell.
If you keep the prices too low then it cuts into your profit margin, this means that you may not make enough money to compensate your hard work for all the hours you are devoting to the business.
Get the word out about your business. Invest in creating a website that will display the menu, photos of delicious items you serve. A website will allow you to interact with your customers easily and also receive orders sitting at home.
Use word-of-mouth technique to spread good reviews about your business. Send flyers to local businesses and promote your breakfast joint in popular social media platforms.
To sum it up,
it is profitable to start a breakfast joint business if you follow the above-mentioned steps. You need to manage the business efficiently, hire trained staff and a good cook who can provide tasty breakfast items to customers with top quality service.
Avoid using low-quality ingredients to cut off start-up costs as this will affect the quality of the food items. Provide a hygienic and clean environment in your joint. Stay focused, work hard to achieve your goals.